Correlation Between Austco Healthcare and Anteris Technologies

Can any of the company-specific risk be diversified away by investing in both Austco Healthcare and Anteris Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Austco Healthcare and Anteris Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Austco Healthcare and Anteris Technologies, you can compare the effects of market volatilities on Austco Healthcare and Anteris Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Austco Healthcare with a short position of Anteris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austco Healthcare and Anteris Technologies.

Diversification Opportunities for Austco Healthcare and Anteris Technologies

-0.55

Correlation Coefficient

Austco Healthcare  Anteris Technologies

Excellent diversification

The 3 months correlation between Austco and Anteris is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Austco Healthcare and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Austco Healthcare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Austco Healthcare are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Austco Healthcare i.e., Austco Healthcare and Anteris Technologies go up and down completely randomly.

Pair Corralation between Austco Healthcare and Anteris Technologies

Assuming the 90 days trading horizon Austco Healthcare is expected to generate 0.65 times more return on investment than Anteris Technologies. However, Austco Healthcare is 1.55 times less risky than Anteris Technologies. It trades about 0.34 of its potential returns per unit of risk. Anteris Technologies is currently generating about -0.21 per unit of risk. If you would invest  25.00  in Austco Healthcare on October 9, 2024 and sell it today you would earn a total of  5.00  from holding Austco Healthcare or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Austco Healthcare  vs.  Anteris Technologies

Austco Healthcare

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Austco Healthcare are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Austco Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Austco Healthcare and Anteris Technologies

The main advantage of trading using opposite Austco Healthcare and Anteris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austco Healthcare position performs unexpectedly, Anteris Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anteris Technologies will offset losses from the drop in Anteris Technologies' long position.

The idea behind Austco Healthcare and Anteris Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.